Metal recycling business SGM has corrected 34% pretty much in line with the iron ore sector although there are more strings to this recycling business. The company delivered earnings ahead of guidance for FY21 but after an initial spike higher the stocks struggled of late as lower scrap prices obviously impede profitability – a projected 3.75% yield also helps while we note UBS upgraded their earnings expectations for SGM yesterday and see the stocks trading north of $17.
MM likes SGM around $14
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